Apartment Construction to Eclipse 500K
Apartment Construction to Eclipse 500K
The pace is higher than the 10-year annual average.
More than half a million apartments are expected to be built by the end of the year. According to RentCafe, there will be 506,353 new apartments constructed in 2025. While this is well off the record of 640,000 units last year, 2025 is above the 10-year average of 439,000 units per year.
The South and Sun Belt continue to boom with more than 265,000 units to be constructed in 2025, which is more than the Midwest (58,590), Northeast (56,521) and West (125,629) combined.
New York was the top metro for apartment construction with more than 30,000 new units. Dallas was slightly off that pace at just under 29,000. Austin, Texas (26,715) and Phoenix (21,188) were the only other metros with at least 20,000 new units expected.
Diving into the smaller markets, Naples, Fla., witnessed a 275% year-over-year increase in apartment completions, while Birmingham, Ala., had a nearly 200% YoY jump.